LAMD-D32 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 700 or no FICO
Max LTV – purchase: 1 unit 70% / 2-4 units 65% (≤$1.5M)
Max LTV – rate/term refinance: 65% (≤$1M) / 60% (≤$1.5M)
Max LTV – cash-out refinance: Not allowed
Minimum loan amount: $150K
Maximum loan amount: $1.5M
Cash-out (cash in hand) limit: N/A
LTV reductions & overlays: Condos (including non-warrantable/condotel) capped at 65%. Purchase 70% (1 unit) / 65% (2–4); rate/term 60% up to $1.5M or 65% up to $1M. Declining markets when LTV is over 65%: −5% (shortage/in balance with 3–6 months marketing time) to −10% (declining values or over 6 months/oversupply). Vacant refinance −10%.

DSCR requirements

Minimum DSCR: 1.00
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA, minimum 1.00.

Products & terms

Products: 30yr fixed
Interest-only: No
Prepayment penalty: Up to 5 yr; none in AK, IL, KS, MI, MN, NJ, NM, ND, OH, RI
Reserves: 12 months PITIA.

Borrower & credit

Housing payment history: 0x30x24 on the subject and the primary residence (full 24 months). Rent-free with family is exception-only. Borrower must have a primary residence abroad.
Credit events (BK, foreclosure, short sale, modification): No credit event within 36 months. US credit report if available; otherwise 3 tradelines 24+ months via international credit report or bank reference letters.
Forbearance, deferrals & modifications: A non-COVID/non-disaster forbearance, a notice of default, a 120-day mortgage late or a modification due to default all count as a credit event and must meet the credit-event seasoning. COVID or non-default modifications are not treated as credit events.
Collections, charge-offs, judgments & liens: Collections and non-mortgage charge-offs under $5,000 may stay open if they won't cloud title; larger ones can stay open with reserves covering the balance. Anything that can become a lien (judgments, tax liens, mechanic's liens, past-due property taxes) must be paid at or before closing, though an IRS/state tax-lien payment plan with 3 months of on-time payments and title sign-off can be allowed. Medical collections are ignored.
Tradelines & credit depth: N/A
First-time homebuyer: N/A – must own primary residence abroad
First-time investor: Allowed
Foreign national: Residents of Canada, the Caribbean (not Cuba), China (not Hong Kong, where state law allows), Europe (not the Balkans/Monaco), Latin America (not Nicaragua) and South America (not Venezuela/Bolivia). Passport plus B-1/B-2 visa (Canada and Visa Waiver countries exempt). No entity, trust, POA or non-occupant co-borrower. US-bank ACH required. First-time investors OK.
ITIN borrower: No
Non-permanent resident: N/A
LLC / entity vesting: Not allowed – individuals only (no LLC, corporation, partnership or trust).
Gift funds & assets: Not allowed. Business funds also not allowed. Funds must be seasoned 60 days and in a US account 30 days (10 days for Canadians).
Financed property / exposure limits: Lender exposure capped at $3M or 2 loans per borrower.
Other borrower rules: Escrows required; escrow holdbacks not allowed. Closing documents signed abroad must be notarized at a US embassy/consulate.

Property

Eligible property types: 1-4 unit, PUD, warrantable & non-warrantable condo incl. condotel
ADUs & unpermitted additions: ADU rent is not allowed – qualify on the main dwelling only. A property with an ADU can still be financed if it meets general property rules.
Non-warrantable condo: Non-warrantable condos and condotels allowed at max 65% LTV.
Condotel: Yes (per program rules)
Rural / acreage: Rural not allowed; max 2 acres.
Minimum square footage: Not published – ask us about your scenario
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Manufactured/mobile homes (including manufactured ADUs), co-ops, domes/geodesic and other unique homes, log and log-façade homes, houseboats, vacant land, 5+ units, blanket (multi-property) mortgages, boarding houses/PadSplit, B&Bs, timeshares/fractional, assisted living, working farms/ranches/orchards, C5/C6 condition, tribal-trust land, Hawaii lava zones 1–2, Puerto Rico/Guam/USVI, homes or units under 500 sq ft, any unit lacking a separate bedroom and a full kitchen with stove/oven (cooktop-only fails), properties not suitable for year-round occupancy, and STR-qualified properties where local code bans short-term rentals.
Declining markets: Declining market (per appraisal) reduces max LTV by 5%.
Appraisal, review & insurance: One appraisal; transferred appraisals allowed.

Rental income

Rent used on a purchase: Long-term only: lower of lease or 1007/1025.
Rent used on a refinance: Lower of lease or 120% of market rent, with 3 months' receipts if using the higher lease. Month-to-month needs 12 months of payment history.
Vacant / unleased refinance: Allowed with a 10% LTV reduction and letter of explanation; on 2–4 units only one unit may be vacant.
Short-term rental (Airbnb/VRBO): Refi only
Short-term rental documentation: Purchase: STR income not allowed. Refinance: 12 months of remittance statements; payout amount used.
Short-term rental limits: No STR on purchases; refinances only with 12-month history.

Refinance seasoning

Cash-out seasoning: Cash-out and delayed financing are not allowed (purchase and rate/term only).
Delayed financing (cash purchase recoup): No
Recently listed for sale: Properties currently listed are not eligible to refinance. If listed in the prior 6 months: rate/term needs the listing off-market before application plus at least a 1-year prepayment penalty (where state law allows); cash-out needs either 6 months off-market, or off-market at least 1 day before application with a 5% LTV reduction plus a 1-year prepay. Cancelled listing, current MLS search and a letter of intent are required.

Other terms

Seller / interested-party concessions: Seller/interested-party contributions up to 6% of price at any LTV. Excess contributions and any personal property (furniture, cars, etc.) are deducted from the sales price before LTV is calculated.
Secondary financing: Not allowed – no new or existing subordinate financing can remain on a DSCR loan.
State & local restrictions: Prepayment penalties not available in AK, IL, KS, MI, MN, NJ, NM, ND, OH and RI.

Additional details

Notes: Assets seasoned 60 days, in US account 30 days (Canadians 10). 3 tradelines/24 mo via US or intl credit or reference letters. ACH required. Escrows required.

← LAMD-D31 · All programs · LAMD-D33 →